![14. [-/3.33 Points] DETAILS CRAUDQL3 5.5.036. MY NOTES PRACTICE ANOTHER What is your expected value for a game whose probabil](http://img.homeworklib.com/questions/73528390-dfd7-11ea-8bf1-a565440a4781.png?x-oss-process=image/resize,w_560)
Homework Answers
Let wager = x
Y be A random variable which denotes profit. Hence y takes the values :- 1.1x x -3x and 0 with probabilities 0.2 0.4 0.1 and 0.3 respectively.
Hence expected value of game = 1.1x*0.2+x*0.4-3x*0.1+0*0.3 = 0.32x.
Ie expected value of game is 0.32x.
Required % of game is 32%.
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